Aradigm (ARDMQ) 10-Q 15 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 05, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Trading Symbol	ARDM
Entity Registrant Name	ARADIGM CORP
Entity Central Index Key	1,013,238
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		15,219,793
Entity Small Business	true
Entity Emerging Growth	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 2,946	$ 7,095
Receivables	118	200
Other assets	412	389
Total current assets	3,476	7,684
Property and equipment, net	190	289
Other assets	92	92
Total assets	3,758	8,065
Current liabilities:
Accounts payable	323	903
Accrued clinical and cost of other studies	14	274
Accrued compensation	761	1,643
Deferred revenue - related party, current	415	1,900
Deferred revenue - other	209	183
Other accrued liabilities	1,099	563
Total current liabilities	2,821	5,466
Deferred rent	57	32
Deferred revenue - related party, non-current	33	90
Debt - non-current, net of discount	1,003
Debt - related party, non-current, net of discount	5,905
Convertible debt - non-current, net of discount	2,615	2,382
Convertible debt - related party, non-current, net of discount	14,786	12,626
Total liabilities	27,220	20,596
Commitments and contingencies
Shareholders' deficit:
Preferred stock, 5,000,000 shares authorized, none outstanding
Common stock, no par value; authorized shares: 50,045,765 at September 30, 2018; 35,045,765 at December 31, 2017; issued and outstanding shares: 15,219,793 at September 30, 2018; 15,170,200 at December 31, 2017	443,948	442,639
Accumulated deficit	(467,410)	(455,170)
Total shareholders' deficit	(23,462)	(12,531)
Total liabilities and shareholders' deficit	$ 3,758	$ 8,065

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value
Common stock, shares authorized	50,045,765	35,045,765
Common stock, shares issued	15,219,793	15,170,200
Common stock, shares outstanding	15,219,793	15,170,200

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue:
Total revenue	$ 282	$ 2,728	$ 2,011	$ 12,096
Operating expenses:
Research and development	1,545	3,543	6,715	10,111
General and administrative	1,246	2,133	4,348	5,722
Total operating expenses	2,791	5,676	11,063	15,833
Loss from operations	(2,509)	(2,948)	(9,052)	(3,737)
Interest income	7	23	27	73
Interest expense	(1,130)	(970)	(3,172)	(2,882)
Other income (expense)	(4)	9	(43)	17
Net loss and comprehensive loss	$ (3,636)	$ (3,886)	$ (12,240)	$ (6,529)
Basic and diluted net loss per common share	$ (0.24)	$ (0.26)	$ (0.81)	$ (0.44)
Shares used in computing basic and diluted net loss per common share	15,186	14,860	15,135	14,836
Contract Revenue Related Party [Member]
Revenue:
Total revenue	$ 170	$ 2,709	$ 1,581	$ 11,804
Contract Revenue [Member]
Revenue:
Total revenue	52	6	176	241
Grant Revenue [Member]
Revenue:
Total revenue	$ 60	$ 13	$ 254	$ 51

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (12,240)	$ (6,529)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	100	85
Stock-based compensation expense	1,214	1,899
Amortization of convertible debt discount	1,399	1,318
Loss on extinguishment of convertible debt	24
Financing costs, debt restructuring	77
Changes in operating assets and liabilities:
Receivables	82	(196)
Prepaid and other current assets	(23)	407
Other assets		(92)
Accounts payable	(691)	269
Accrued compensation	(882)	854
Deferred revenue - related party	(1,542)	(6,647)
Deferred revenue - other	26
Other accrued liabilities	1,320	(2,336)
Deferred Rent	25	21
Net cash used in operating activities	(11,111)	(10,947)
Cash flows from investing activities:
Transfer to/from restricted cash		1,006
Capital expenditures	(1)	(112)
Net cash (used in) provided by investing activities	(1)	894
Cash flows from financing activities:
Proceeds from issuance of note payable	7,000
Proceeds from issuance of common stock	95	56
Payment of convertible debt	(50)
Payments for financing costs	(82)
Net cash provided by financing activities	6,963	56
Net decrease in cash and cash equivalents	(4,149)	(9,997)
Cash and cash equivalents at beginning of period	7,095	22,591
Cash and cash equivalents at end of period	2,946	12,594
Supplemental disclosure of non-cash activities:
Accrued interest capitalization	$ 1,044
Cumulative effect of adoption of new accounting standards		6,046
Stock issued in payment of officer bonus		$ 444

Organization, Basis of Presenta

Organization, Basis of Presentation and Liquidity	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Basis of Presentation and Liquidity	1. Organization, Basis of Presentation and Liquidity Organization Aradigm Corporation (the “Company,” “we,” “our,” or “us”) is a California corporation, incorporated in 1991, focused on the development and commercialization of drugs delivered by inhalation for the treatment and prevention of severe respiratory diseases. The Company’s principal activities to date have included conducting research and development and developing collaborations. Management does not anticipate receiving revenues from the sale of any of its products during the upcoming year. The Company operates as a single operating segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K 10-K”). The consolidated balance sheet at December 31, 2017 included above has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and notes thereto included in the 2017 Annual Report on Form 10-K. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Liquidity and Financial Condition As reflected in the accompanying condensed consolidated financial statements, the Company has incurred significant recurring operating losses and negative cash flows from its operations and, as of September 30, 2018, had an accumulated deficit of $467.4 million, a total shareholders’ deficit of $23.5 million and working capital of $0.7 million. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management expects operating losses to continue for the foreseeable future including the year ending December 31, 2018. As of September 30, 2018, the Company’s current assets of $3.5 million are more than current liabilities of $2.8 million by approximately $0.7 million. In February 2018, the Board of Directors (the “Board”) implemented temporary measures intended to preserve the Company’s cash resources until additional sources of capital can be secured, including the reduction of cash compensation and severance benefits for certain officers and the reduction of cash compensation for members of the Board. On April 13, 2018, the Company entered into a note purchase agreement whereby entities affiliated with Grifols and First Eagle, the Company’s two largest shareholders beneficially owning collectively approximately 75% of the Company’s common stock as of September 30, 2018 and owning all of the Convertible Notes and Warrants described in Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, After quarter end, the Company received an additional $2 million on October 25, 2018, from Grifols under the additional note purchase agreement described in Note 13. Subject to the satisfaction or waiver of the applicable closing conditions, the Company currently anticipates the final closing under the October 2018 note purchase agreement for the payment of an additional approximately $2 million to occur before December 31, 2018. The company’s management currently estimates that at September 30, 2018, the additional funds received under the first closing of this financing under the October 2018 note purchase agreement of $2 million along with the Company’s cash balance of approximately $2.9 million will be sufficient to fund the Company’s operations at least through December 31, 2018. However, because of the expected losses and negative cash flows from operations, the Company will continue to require additional capital through the issuance of debt or equity securities, royalty financing transactions, strategic transactions or otherwise to fund the Company’s operations and continue the development of the Company’s lead product candidate Linhaliq. No assurance can be given that the Company will be successful in raising such additional capital on favorable terms or at all. Not achieving such funding on a timely basis would materially harm its business, financial condition and results of operations and could require the Company to delay or reduce the scope of all or a portion of its development programs, dispose of its assets or technology or to cease operations. Accordingly, the Company may not be able to continue as a going concern. For more information, see Note 11 (Going Concern) to the condensed consolidated financial statements presented in this report. See also Item 1A. – Risk Factors – “Our cash resources will only be sufficient to fund our operations through the fourth quarter of 2018. Additional funds may not be available on terms that are acceptable to us or at all.” Changing circumstances may cause the Company to expend cash significantly faster than it currently anticipates, and the Company may need to spend more cash than currently expected because of circumstances beyond its control. For these reasons, the Company is unable to estimate the actual funds it will require for development and any approved marketing and commercialization activities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, accruals for operating expenses, assumptions for valuing options and warrants, and income taxes. Actual results could differ from these estimates. Net Loss Per Common Share Basic net loss per common share is computed using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted shares of common stock subject to repurchase. Diluted net income/(loss) per common share is based on the weighted average number of common and common equivalent shares, such as stock options and unvested restricted stock shares outstanding during the period. Potentially dilutive securities were excluded, because such inclusion of shares would have been anti-dilutive. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. 505-50. pre-adoption non-employee In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Fair Value Measurement For additional information about the Company’s significant accounting policies, see Note 1 to the consolidated financial statements included in the 2017 Annual Report on Form 10-K

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2018
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	3. Cash and Cash Equivalents At September 30, 2018 and December 31, 2017, the Company’s cash and cash equivalents approximated their fair values. The Company currently invests its cash and cash equivalents in money market funds.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements The Company follows ASC 820, Fair Value Measurements The Company’s cash and cash equivalents at September 30, 2018 consist of cash and money market funds. Money market funds are valued using quoted market prices.

Other Accrued Liabilities

Other Accrued Liabilities	9 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
Other Accrued Liabilities	5. Other Accrued Liabilities At September 30, 2018, other accrued liabilities consist of accrued expenses for interest of $1,071,000, expenses for services of $20,000 and payroll withholding liabilities of $8,000. The liability for accrued interest of $1,071,000 is related to the Convertible Notes as outlined in Note 6 and represents the interest on the Convertible Notes that is accrued but unpaid as of September 30, 2018. At December 31, 2017, other accrued liabilities consisted of accrued expenses for interest of $345,000, expenses for services of $132,000 and payroll withholding liabilities of $86,000.

Debt and Warrants

Debt and Warrants	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Debt and Warrants	6. Debt and Warrants As of September 30, 2018, the Company’s debt consists of the following: Principal Unamortized Debt Balance (in thousands, except conversion rate and conversion price) Debt $ 1,055 $ (52 ) $ 1,003 Debt – related party 5,954 (49 ) 5,905 Convertible debt 3,135 (520 ) 2,615 Convertible debt – related party 20,850 (6,064 ) 14,786 Total $ 30,994 $ (6,685 ) $ 24,309 For the three and nine months ended September 30, 2018, the Company’s interest expense consists of the following: Three Months ended September 30, Nine Months ended September 30, 2018 2017 2018 2017 (in thousands) Coupon interest expense $ 665 $ 517 $ 1,770 $ 1,557 Noncash interest expense Amortization of debt discount 397 393 1,202 1,143 Amortization of transaction costs 68 60 197 174 Miscellaneous interest expense — — 3 8 $ 1,130 $ 970 $ 3,172 $ 2,882 2018 Promissory Notes On April 13, 2018, the Company entered into a promissory note purchase agreement whereby entities affiliated with Grifols and First Eagle, the Company’s two largest shareholders, beneficially owning, collectively, approximately 75% of the Company’s common stock as of September 30, 2018 and owning all of the Convertible Notes and Warrants described below, agreed to purchase up to approximately $7 million aggregate principal amount of 9% senior unsecured promissory notes due 2021 (the “Promissory Notes”). The Promissory Notes bear interest at a rate of 9% per annum payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2018 in the case of Promissory Notes issued on April 13, 2018 and on November 1, 2018 and in the case of Promissory Notes issued thereafter, unless earlier redeemed or cancelled in accordance with the terms of the Promissory Notes. Unless the Company elects otherwise, interest will be capitalized on the applicable interest payment date by adding such accrued interest to the principal balance of such Promissory Notes, at which time such interest will be deemed to have been paid. The Promissory Notes are redeemable by the Company for cash at any time for a redemption price of 100% plus accrued and unpaid interest and are subject to acceleration upon certain events of default. The Company completed the first closing under the note purchase agreement on April 13, 2018, at which time the Company issued and sold approximately $2 million aggregate principal amount of Promissory Notes. After the initial closing, the Company held five more closings monthly thereafter and received installment payments totaling an additional approximately $5 million by the period ended September 30, 2018. Financing costs of $116,252 incurred in connection with the issuance of the Promissory Notes were recorded as a debt discount and are being amortized using the effective interest rate method and recognized as non-cash interest 2016 Convertible Notes and Warrants On April 21, 2016, the Company entered into a securities purchase agreement to conduct a private offering, or the Convertible Note Financing, consisting of $23 million in aggregate principal amount of 9% senior convertible notes due 2021 convertible into shares of common stock, or the Convertible Notes, and 263,436 warrants to purchase shares of the Company’s common stock or the Warrants. The Convertible Notes bear interest at a rate of 9% per year, payable semiannually in arrears on November 1 and May 1 of each year commencing on November 1, 2016. The Convertible Notes mature on May 1, 2021, unless earlier redeemed or converted. The Convertible Notes are governed by the terms of the Indenture, between the Company and U.S. Bank National Association, as trustee, dated as of April 25, 2016, or the Indenture. The Convertible Notes are senior unsecured and unsubordinated obligations; rank equal in right of payment to the Company’s existing and future unsecured indebtedness that is not subordinated and are effectively subordinated in right of payment to the Company’s existing and future secured indebtedness. On or after December 1, 2017, the Company may redeem for cash all or a portion of the Convertible Notes if the last reported sale price of the Company’s common stock is at any time equal to or greater than 200% of the conversion price then in effect for at least twenty trading days immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The Indenture provides for customary events of default which may result in the acceleration of the maturity of the Notes, including, but not limited to, cross acceleration to certain other indebtedness of the Company and its subsidiaries. In the case of an event of default arising from specified events of bankruptcy or insolvency or reorganization, all outstanding Convertible Notes will become due and payable immediately without further action or notice. If any other event of default under the Indenture occurs or is continuing, the trustee or holders of at least 25% in the aggregate principal amount of the then outstanding Convertible Notes may declare all the Convertible Notes to be due and payable immediately. The Warrants have a five-year term and are exercisable at $5.21 per share of common stock. The exercise price is subject to adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events or upon any distributions of assets, including cash, stock or other property to the Company’s shareholders. On April 18, 2018, the Company entered into a Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, or the Supplemental Indenture, which amended the Indenture by, among other things, (i) the addition of provisions permitting the Company to make payments of interest on the Convertible Notes by increasing the outstanding principal amount of the Convertible Notes in the amount of the accrued interest being so paid and (ii) the removal of the Convertible Note holders’ option to require the Company to repurchase the Notes upon the occurrence of certain events, any of which constituted a “Fundamental Change” as defined in the Indenture. The Company considered the modification of the Convertible Notes to be a troubled debt restructuring under the guidance of ASC 470-60 Troubled Debt Restructurings by Debtors On April 25, 2016, the initial closing of the Convertible Notes took place under which the Company raised $20 million from a total of two investors and issued 4,319 Warrants to one investor. Of the $20 million, $19.9 million was financed by Grifols, a related party to the Company, as described in Note 8 below. The fair value of the warrants issued in the first closing was $11,000 and was recorded as a component of equity and discount to the debt host. There were 3,319,820 common shares underlying the conversion feature that was bifurcated as a derivative liability due to the Conversion Share Cap. The effective interest rate of the liability component was equal to 20.62% for the nine months ended September 30, 2018. On July 14, 2016, the second and final closing of the Convertible Notes took place under which the Company raised $3 million from a total of two investors and issued 259,117 Warrants. The fair value of the warrants issued in the second closing was $662,000 and was recorded as a component of equity and discount to the debt host. The effective interest rate of the liability component was equal to 15.15% for the nine months ended September 30, 2018. Because of the modification of the Convertible Notes, one investor elected not to participate in the refinancing and the Company prepaid a Convertible Note with a principal balance of $50,000. The extinguishment resulted in the Company recording a loss on extinguishment of $24,932 during the nine months ended September 30, 2018 which is included in Other income (expense) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The financing costs of $2.4 million incurred in connection with the issuance of the Convertible Notes were allocated to the derivative liability, warrants and Convertible Note components based on their relative fair values. Financing costs of $1.4 million allocated to the Convertible Note host are being amortized using the effective interest rate method and recognized as non-cash interest As of September 30, 2018, the unamortized debt discount will be amortized over a remaining period of approximately 2.59 years. The if-converted For more information on the Company’s accounting for Convertible Notes and Warrants, see Note 7 to the consolidated financial statements included in the Company’s 2017 Annual Report on Form 10-K.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	7. Revenue Recognition For additional detail on the Company’s accounting policy regarding revenue recognition, see “Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.” The following table presents changes in the Company’s contract assets and liabilities for the nine months ended September 30, 2018. Balance at Additions Deductions Balance at (in thousands) Contract Assets $ 67 $ 254 $ (196 ) $ 125 Contract Liabilities: Deferred Revenue $ 2,173 $ 202 $ (1,718 ) $ 657 During the three months ended September 30, 2018 and 2017, the Company recognized the following revenues (in thousands). Three Months ended September 30, 2018 2017 Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 168 $ 2,667 New activities in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods – contract revenue 15 (21 ) Performance obligations satisfied from new activities in the current period – contract revenue 39 69 Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods – grant revenue (97 ) — Performance obligations satisfied from new activities in the current period – grant revenue 157 13 Total revenue $ 282 $ 2,728 During the nine months ended September 30, 2018 and 2017, the Company recognized the following revenues (in thousands). Nine Months ended September 30, 2018 2017 Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 1,663 $ 7,083 New activities in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods – contract revenue 55 4,521 Performance obligations satisfied from new activities in the current period – contract revenue 39 441 Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods – grant revenue (106 ) — Performance obligations satisfied from new activities in the current period – grant revenue 360 51 Total revenue $ 2,011 $ 12,096

Collaboration Agreement

Collaboration Agreement	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration Agreement	8. Collaboration Agreement Grifols License and Collaboration Agreement See Note 9 to the audited consolidated financial statements included in the 2017 Annual Report on Form 10-K The Company’s performance obligations under the Grifols Collaboration include those related to the worldwide license to commercialize products developed from the collaboration which was satisfied in 2013, development services for Phase 3 clinical trials that were completed as of December 31, 2016, regulatory submission services for the first indication that were complete as of September 30, 2017, regulatory approval services in the US for the first indication that were complete as of March 31, 2018, and regulatory approval services in the EU for the first indication which are in progress and forecasted to be complete by the third quarter of 2019. In addition, the Company identified that Grifols has an option that will create manufacturing obligations for the Company upon exercise by the customer. Further, these customer options for manufacturing services were evaluated and did not include a material right. The Company recognizes revenue from license rights when the customer can use and benefit from the license rights. The Company recognizes revenue from its services performance obligations over time using a cost-to-cost input Under the License and Collaboration Agreement with Grifols, the Company is eligible to receive up to $25.0 million in payments upon the achievement of regulatory filing and approval milestones. As of September 30, 2018, the Company has achieved two of the six milestones and has received $10.0 million in payments. Milestone payments related to regulatory submission and approval services are considered variable consideration and excluded from the transaction price for the period ended September 30, 2018 due to the constraint on variable consideration. The Company has deferred $448,000 of the transaction price in the Grifols’ arrangement that is allocated to one performance obligation that is partially unsatisfied as of September 30, 2018. This amount is expected to be recognized over time as services are performed through the third quarter of 2019.

Stock-Based Compensation and St

Stock-Based Compensation and Stock Options and Awards	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation and Stock Options and Awards	9. Stock-Based Compensation and Stock Options and Awards The following table shows the stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Costs and expenses: Research and development $ 74 $ 368 $ 560 $ 1,001 General and administrative 184 368 654 898 Total stock-based compensation expense $ 258 $ 736 $ 1,214 $ 1,899 There was no capitalized stock-based employee compensation cost for the three and nine months ended September 30, 2018 and 2017. Since the Company did not record a tax provision during the quarters ended September 30, 2018 and 2017, there was no recognized tax benefit associated with stock-based compensation expense. During the three months ended March 31, 2018, the Company granted 730,000 performance-based options to the employees of the Company. These options were granted at-the-money, In March 2016, and June and December of 2017, and June of 2018, the Company granted to the Officers certain stock option bonus awards, that vested based upon meeting certain specified company-wide performance goals. These options and stock awards were granted at-the-money, Stock Option Plans: 2005 Equity Incentive Plan (the “2005 Plan”), and 2015 Equity Incentive Plan (the “2015 Plan”) On March 13, 2015 the Board adopted and, on May 14, 2015 the Company’s shareholders approved, the 2015 Plan. The 2015 Plan replaces the Company’s 2005 Plan, which expired in March 2015. The 2015 Plan is intended to promote the Company’s long-term success and increase shareholder value by attracting, motivating, and retaining non-employee Stock Option Activity The following is a summary of activity under the 2005 Plan and the 2015 Plan for the nine months ended September 30, 2018: Shares Available for Balance at January 1, 2018 1,645,124 Options granted (1,630,469 ) Options cancelled 1,787,778 Awards cancelled 463,500 Balance at September 30, 2018 2,265,933 Stock Options Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Aggregate Outstanding at January 1, 2018 3,727,581 $ 4.72 Options granted 1,630,469 $ 1.25 Options exercised (3,500 ) $ 1.06 Options cancelled (1,787,778 ) $ 4.90 Outstanding at September 30, 2018 3,566,772 $ 3.04 8.28 $ 53,360 Exercisable at September 30, 2018 2,105,323 $ 3.53 7.60 $ 24,320 During the nine months ended September 30, 2018, 3,500 stock options were exercised. The total amount of unrecognized compensation cost related to non-vested A summary of the activity of the Company’s unvested restricted stock and performance bonus stock award activities for the nine months ending September 30, 2018 is presented below representing the maximum number of shares that could be earned or vested under the 2005 Plan and the 2015 Plan: Restricted Stock Awards Number of Shares Weighted Average Grant Date Fair Balance at January 1, 2018 613,538 $ 1.95 Restricted shares cancelled (463,500 ) $ 1.51 Restricted share awards vested (136,613 ) $ 3.10 Balance at September 30, 2018 13,425 $ 5.24 For restricted stock awards the Company recognizes compensation expense over the vesting period for the fair value of the stock award on the measurement date. As of September 30, 2018, there was approximately zero of total unrecognized compensation costs, net of forfeitures, related to non-vested

Net Loss Per Common Share

Net Loss Per Common Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per Common Share	10. Net Loss Per Common Share The Company computes basic net loss per common share using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of shares of common stock subject to repurchase. The effects of including the incremental shares associated with options, warrants and unvested restricted stock are anti-dilutive, and are not included in the diluted weighted average number of shares of common stock outstanding for the nine months ending September 30, 2018 and 2017. The Company excluded the following securities from the calculation of diluted net loss per common share for the nine months ended September 30, 2018 and 2017, as their effect would be anti-dilutive (in thousands). Nine months ended September 30, 2018 2017 Common shares underlying convertible notes 4,604 4,415 Outstanding stock options 3,567 2,790 Common shares underlying warrants 263 263 Unvested restricted stock 13 227 Unvested restricted stock units 10 10

Going Concern

Going Concern	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	11. Going Concern As reflected in the accompanying condensed consolidated financial statements, the Company has incurred significant recurring operating losses and negative cash flows from its operations and, as of September 30, 2018, had an accumulated deficit of $467.4 million, a total shareholders’ deficit of $23.5 million and working capital of $0.7 million. These factors among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management expects operating losses to continue for the foreseeable future including the year ending December 31, 2018. As of September 30, 2018, the Company’s current assets of $3.5 million are more than current liabilities of $2.8 million by approximately $0.7 million. In February 2018, the Board implemented temporary measures intended to preserve the Company’s cash resources until additional sources of capital can be secured, including the reduction of cash compensation and severance benefits for certain officers and the reduction of cash compensation for members of the Board. On April 13, 2018, the Company entered into a note purchase agreement whereby entities affiliated with Grifols and First Eagle, the Company’s two largest shareholders, beneficially owning collectively approximately 75% of the Company’s common stock as of September 30, 2018 and owning all of the Convertible Notes and Warrants described in Note 6, agreed to purchase up to approximately $7 million aggregate principal amount of bridge notes, or the Promissory Notes. The Company completed the first closing under the note purchase agreement on April 13, 2018, at which time the Company issued and sold approximately $2 million aggregate principal amount of Promissory Notes to the lenders thereunder. After the initial closing, the Company held five more closings monthly thereafter and received installment payments totaling an additional approximately $5 million. After quarter end, the Company received an additional approximately $2 million on October 25, 2018, from Grifols under the note purchase agreement described in Note 13. Subject to the satisfaction or waiver of the applicable closing conditions, the Company currently anticipates the final closing under the October 2018 note purchase agreement for the payment of approximately $2 million to occur before December 31, 2018. The company’s management currently estimates that at September 30, 2018, the additional funds received under the first closing of this financing under the October 2018 note purchase agreement of $2 million along with the Company’s cash balance of approximately $2.9 million will be sufficient to fund the Company’s operations at least through December 31, 2018. However, because of the expected losses and negative cash flows from operations, the Company will continue to require additional capital through the issuance of debt or equity securities, royalty financing transactions, strategic transactions or otherwise, to fund the Company’s operations and continue the development of the Company’s lead product candidate Linhaliq. No assurance can be given that the Company will be successful in raising such additional capital on favorable terms or at all. Not achieving such funding on a timely basis would materially harm its business, financial condition and results of operations and could require the Company to delay or reduce the scope of all or a portion of its development programs, dispose of its assets or technology or to cease operations. See also Item 1A. – Risk Factors – “Our cash resources will only be sufficient to fund our operations through the fourth quarter of 2018. Additional funds may not be available on terms that are acceptable to us or at all.” Changing circumstances may cause the Company to expend cash significantly faster than it currently anticipates, and the Company may need to spend more cash than currently expected because of circumstances beyond its control. For these reasons, the Company is unable to estimate the actual funds it will require for development and any approved marketing and commercialization activities. Since cash and cash equivalents are insufficient to fund the Company’s operations for the ensuing twelve months from the filing of this report, there is substantial doubt about the Company’s ability to continue to operate as a going concern. While recoverability of the recorded asset amounts shown in the accompanying balance sheet is dependent upon continued operations of the Company, the condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies Lease On April 1, 2017, the Company entered into an amendment of the current lease for a building containing offices, laboratory, and manufacturing facilities, through March 31, 2023. The lease calls for annual minimum rental payments that increase at the rate of 3.5% per annum throughout the lease term. In accordance with GAAP, the Company recognizes rent expense on a straight-line basis. The Company recorded deferred rent for the difference between the amounts paid and recorded as an expense. At September 30, 2018 and December 31, 2017, the Company had $57,000 and $32,000 in deferred rent. If the lease is not terminated early in accordance with its terms, the Company’s future minimum rental payments required under the operating lease as of September 30, 2018 are as follows: For the year ended September 30, (in thousands) 2019 $ 499 2020 516 2021 535 2022 553 2023 140 Total $ 2,243 For the nine months ended September 30, 2018, base rental expense was approximately $385,000. Legal Matters On May 1, 2017, the Company filed a post grant review, or a PGR, petition in the United States Patent and Trademark Office Patent Trial and Appeal Board, or PTAB, challenging the validity of all 26 claims of U.S. Patent No.9,402,845 or the ‘845 Patent, assigned to Insmed Incorporated, or Insmed. The ‘845 Patent issued on August 2, 2016, and is entitled “Lipid-based compositions of antiinfectives for treating pulmonary infections and methods of use thereof.” PGR is a proceeding that became available in September 2012 in accordance with the America Invents Act. In a PGR, a petitioner may request that PTAB reconsider the validity of issued patent claims. Any patent claim PTAB determines to be unpatentable is stricken from the challenged patent. In August 2017, Insmed filed a Preliminary Response. In November 2017, PTAB denied institution of post-grant review of the ‘845 Patent. The Company is currently assessing the PTAB’s decision. On January 11, 2018, a putative class action lawsuit, Kevin Kheder v. Aradigm Corporation, et al., 3:18-cv-00261,

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events On October 25, 2018, the Company entered into a senior note purchase agreement under which Grifols, the Company’s largest shareholder beneficially owning 48% of the Company’s common stock and owning most of the Notes – related party and Convertible Notes – related party described in Note 6, agreed to purchase approximately up to $4 million aggregate principal amount of the Company’s senior unsecured promissory notes due 2021. The Company completed the first closing under this note purchase agreement on October 25, 2018, at which time the Company issued and sold $2 million aggregate principal amount of notes to Grifols. Subject to the satisfaction or waiver of the conditions to the closing set forth in the purchase agreement, the Company anticipates the sale of the remaining approximately $2 million of the Notes to occur in one subsequent closing, which the Company currently anticipates to occur prior to December 31, 2018. The promissory notes bear interest at a rate of 9% per annum payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2018 in the case of the promissory notes issued on October 25, 2018, and on May 1, 2019 in the case of promissory notes issued thereafter, unless earlier redeemed or cancelled in accordance with the terms of the promissory notes. Unless the Company elects otherwise, accrued interest payable on each outstanding promissory note will be capitalized on the applicable interest payment date by adding such accrued interest to the principal balance of such Promissory Notes, at which time such interest will be deemed to have been paid. The promissory notes are redeemable by the Company for cash at any time, in whole or in part, for a redemption price of 100% plus accrued and unpaid interest to, but excluding, the redemption date, and are subject to acceleration upon the occurrence of one or more specified events of default.

Organization, Basis of Presen_2

Organization, Basis of Presentation and Liquidity (Policies)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Aradigm Corporation (the “Company,” “we,” “our,” or “us”) is a California corporation, incorporated in 1991, focused on the development and commercialization of drugs delivered by inhalation for the treatment and prevention of severe respiratory diseases. The Company’s principal activities to date have included conducting research and development and developing collaborations. Management does not anticipate receiving revenues from the sale of any of its products during the upcoming year. The Company operates as a single operating segment.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K 10-K”). The consolidated balance sheet at December 31, 2017 included above has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and notes thereto included in the 2017 Annual Report on Form 10-K. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.
Liquidity and Financial Condition	Liquidity and Financial Condition As reflected in the accompanying condensed consolidated financial statements, the Company has incurred significant recurring operating losses and negative cash flows from its operations and, as of September 30, 2018, had an accumulated deficit of $467.4 million, a total shareholders’ deficit of $23.5 million and working capital of $0.7 million. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management expects operating losses to continue for the foreseeable future including the year ending December 31, 2018. As of September 30, 2018, the Company’s current assets of $3.5 million are more than current liabilities of $2.8 million by approximately $0.7 million. In February 2018, the Board of Directors (the “Board”) implemented temporary measures intended to preserve the Company’s cash resources until additional sources of capital can be secured, including the reduction of cash compensation and severance benefits for certain officers and the reduction of cash compensation for members of the Board. On April 13, 2018, the Company entered into a note purchase agreement whereby entities affiliated with Grifols and First Eagle, the Company’s two largest shareholders beneficially owning collectively approximately 75% of the Company’s common stock as of September 30, 2018 and owning all of the Convertible Notes and Warrants described in Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, After quarter end, the Company received an additional $2 million on October 25, 2018, from Grifols under the additional note purchase agreement described in Note 13. Subject to the satisfaction or waiver of the applicable closing conditions, the Company currently anticipates the final closing under the October 2018 note purchase agreement for the payment of an additional approximately $2 million to occur before December 31, 2018. The company’s management currently estimates that at September 30, 2018, the additional funds received under the first closing of this financing under the October 2018 note purchase agreement of $2 million along with the Company’s cash balance of approximately $2.9 million will be sufficient to fund the Company’s operations at least through December 31, 2018. However, because of the expected losses and negative cash flows from operations, the Company will continue to require additional capital through the issuance of debt or equity securities, royalty financing transactions, strategic transactions or otherwise to fund the Company’s operations and continue the development of the Company’s lead product candidate Linhaliq. No assurance can be given that the Company will be successful in raising such additional capital on favorable terms or at all. Not achieving such funding on a timely basis would materially harm its business, financial condition and results of operations and could require the Company to delay or reduce the scope of all or a portion of its development programs, dispose of its assets or technology or to cease operations. Accordingly, the Company may not be able to continue as a going concern. For more information, see Note 11 (Going Concern) to the condensed consolidated financial statements presented in this report. See also Item 1A. – Risk Factors – “Our cash resources will only be sufficient to fund our operations through the fourth quarter of 2018. Additional funds may not be available on terms that are acceptable to us or at all.” Changing circumstances may cause the Company to expend cash significantly faster than it currently anticipates, and the Company may need to spend more cash than currently expected because of circumstances beyond its control. For these reasons, the Company is unable to estimate the actual funds it will require for development and any approved marketing and commercialization activities.
Use of Estimates	Use of Estimates The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates include useful lives for property and equipment and related depreciation calculations, accruals for operating expenses, assumptions for valuing options and warrants, and income taxes. Actual results could differ from these estimates.
Net Loss Per Common Share	Net Loss Per Common Share Basic net loss per common share is computed using the weighted-average number of shares of common stock outstanding during the period less the weighted-average number of restricted shares of common stock subject to repurchase. Diluted net income/(loss) per common share is based on the weighted average number of common and common equivalent shares, such as stock options and unvested restricted stock shares outstanding during the period. Potentially dilutive securities were excluded, because such inclusion of shares would have been anti-dilutive.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. 505-50. pre-adoption non-employee In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Fair Value Measurement For additional information about the Company’s significant accounting policies, see Note 1 to the consolidated financial statements included in the 2017 Annual Report on Form 10-K

Debt and Warrants (Tables)

Debt and Warrants (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Summary of Debt	As of September 30, 2018, the Company’s debt consists of the following: Principal Unamortized Debt Balance (in thousands, except conversion rate and conversion price) Debt $ 1,055 $ (52 ) $ 1,003 Debt – related party 5,954 (49 ) 5,905 Convertible debt 3,135 (520 ) 2,615 Convertible debt – related party 20,850 (6,064 ) 14,786 Total $ 30,994 $ (6,685 ) $ 24,309
Summary of Interest Expense	For the three and nine months ended September 30, 2018, the Company’s interest expense consists of the following: Three Months ended September 30, Nine Months ended September 30, 2018 2017 2018 2017 (in thousands) Coupon interest expense $ 665 $ 517 $ 1,770 $ 1,557 Noncash interest expense Amortization of debt discount 397 393 1,202 1,143 Amortization of transaction costs 68 60 197 174 Miscellaneous interest expense — — 3 8 $ 1,130 $ 970 $ 3,172 $ 2,882

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Summary of Changes in Contract Assets and Liabilities	The following table presents changes in the Company’s contract assets and liabilities for the nine months ended September 30, 2018. Balance at Additions Deductions Balance at (in thousands) Contract Assets $ 67 $ 254 $ (196 ) $ 125 Contract Liabilities: Deferred Revenue $ 2,173 $ 202 $ (1,718 ) $ 657
Summary of Revenue Recognized	During the three months ended September 30, 2018 and 2017, the Company recognized the following revenues (in thousands). Three Months ended September 30, 2018 2017 Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 168 $ 2,667 New activities in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods – contract revenue 15 (21 ) Performance obligations satisfied from new activities in the current period – contract revenue 39 69 Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods – grant revenue (97 ) — Performance obligations satisfied from new activities in the current period – grant revenue 157 13 Total revenue $ 282 $ 2,728 During the nine months ended September 30, 2018 and 2017, the Company recognized the following revenues (in thousands). Nine Months ended September 30, 2018 2017 Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period: Performance obligations satisfied $ 1,663 $ 7,083 New activities in the period: Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods – contract revenue 55 4,521 Performance obligations satisfied from new activities in the current period – contract revenue 39 441 Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods – grant revenue (106 ) — Performance obligations satisfied from new activities in the current period – grant revenue 360 51 Total revenue $ 2,011 $ 12,096

Stock-Based Compensation and _2

Stock-Based Compensation and Stock Options and Awards (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-Based Compensation Expense	The following table shows the stock-based compensation expense included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Costs and expenses: Research and development $ 74 $ 368 $ 560 $ 1,001 General and administrative 184 368 654 898 Total stock-based compensation expense $ 258 $ 736 $ 1,214 $ 1,899
Schedule of Activity Under Stock Option Plan	The following is a summary of activity under the 2005 Plan and the 2015 Plan for the nine months ended September 30, 2018: Shares Available for Balance at January 1, 2018 1,645,124 Options granted (1,630,469 ) Options cancelled 1,787,778 Awards cancelled 463,500 Balance at September 30, 2018 2,265,933 Stock Options Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Aggregate Outstanding at January 1, 2018 3,727,581 $ 4.72 Options granted 1,630,469 $ 1.25 Options exercised (3,500 ) $ 1.06 Options cancelled (1,787,778 ) $ 4.90 Outstanding at September 30, 2018 3,566,772 $ 3.04 8.28 $ 53,360 Exercisable at September 30, 2018 2,105,323 $ 3.53 7.60 $ 24,320
Schedule of Unvested Restricted Stock Award Activities	A summary of the activity of the Company’s unvested restricted stock and performance bonus stock award activities for the nine months ending September 30, 2018 is presented below representing the maximum number of shares that could be earned or vested under the 2005 Plan and the 2015 Plan: Restricted Stock Awards Number of Shares Weighted Average Grant Date Fair Balance at January 1, 2018 613,538 $ 1.95 Restricted shares cancelled (463,500 ) $ 1.51 Restricted share awards vested (136,613 ) $ 3.10 Balance at September 30, 2018 13,425 $ 5.24

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Securities Excluded from Calculation of Diluted Net Loss per Common Share	The Company excluded the following securities from the calculation of diluted net loss per common share for the nine months ended September 30, 2018 and 2017, as their effect would be anti-dilutive (in thousands). Nine months ended September 30, 2018 2017 Common shares underlying convertible notes 4,604 4,415 Outstanding stock options 3,567 2,790 Common shares underlying warrants 263 263 Unvested restricted stock 13 227 Unvested restricted stock units 10 10

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Rental Payments Required under the Operating Lease	If the lease is not terminated early in accordance with its terms, the Company’s future minimum rental payments required under the operating lease as of September 30, 2018 are as follows: For the year ended September 30, (in thousands) 2019 $ 499 2020 516 2021 535 2022 553 2023 140 Total $ 2,243

Organization, Basis of Presen_3

Organization, Basis of Presentation and Liquidity - Additional Information (Detail)	Oct. 25, 2018USD ($)	Apr. 13, 2018USD ($)	Sep. 30, 2018USD ($)Segment	Dec. 31, 2017USD ($)
Income Tax Expense Benefit [Line Items]
Number of operating segment | Segment			1
Accumulated deficit			$ (467,410,000)	$ (455,170,000)
Working capital deficit			700,000
Total shareholders' deficit			(23,462,000)	(12,531,000)
Current assets			3,476,000	7,684,000
Current liabilities			2,821,000	5,466,000
Current assets are less than current liabilities			$ 700,000
Ownership percentage			75.00%
Cash and cash equivalents			$ 2,946,000	$ 7,095,000
Grifols and First Eagle [Member]
Income Tax Expense Benefit [Line Items]
Ownership percentage		75.00%
Subsequent Event [Member]
Income Tax Expense Benefit [Line Items]
Ownership percentage	48.00%
Bridge Notes [Member] | Grifols and First Eagle [Member]
Income Tax Expense Benefit [Line Items]
Aggregate principal amount		$ 7,000,000
Promissory Note [Member]
Income Tax Expense Benefit [Line Items]
Proceed from promissory notes issued		$ 2,000,000	$ 5,000,000
Promissory Note [Member] | Subsequent Event [Member]
Income Tax Expense Benefit [Line Items]
Proceed from promissory notes issued	$ 2,000,000
Remaining amount of notes	$ 2,000,000

Other Accrued Liabilities - Add

Other Accrued Liabilities - Additional Information (Detail) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Other Accrued Liabilities [Line Items]
Accrued payroll withholding liabilities	$ 761,000	$ 1,643,000
Other Accrued Liabilities [Member]
Other Accrued Liabilities [Line Items]
Accrued expenses for services	20,000	132,000
Accrued payroll withholding liabilities	8,000	86,000
Convertible Debt [Member] | Other Accrued Liabilities [Member]
Other Accrued Liabilities [Line Items]
Accrued expenses for interest	$ 1,071,000	$ 345,000

Debt and Warrants - Summary of

Debt and Warrants - Summary of Debt (Detail) $ in Thousands	Sep. 30, 2018USD ($)
Debt Instrument [Line Items]
Principal	$ 30,994
Unamortized Debt Discount	(6,685)
Balance	24,309
Convertible Debt [Member]
Debt Instrument [Line Items]
Principal	3,135
Unamortized Debt Discount	(520)
Balance	2,615
Convertible Debt [Member] | Affiliated Entity [Member]
Debt Instrument [Line Items]
Principal	20,850
Unamortized Debt Discount	(6,064)
Balance	14,786
Debt [Member]
Debt Instrument [Line Items]
Principal	1,055
Unamortized Debt Discount	(52)
Balance	1,003
Debt [Member] | Affiliated Entity [Member]
Debt Instrument [Line Items]
Principal	5,954
Unamortized Debt Discount	(49)
Balance	$ 5,905

Debt and Warrants - Summary o_2

Debt and Warrants - Summary of Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest Expense [Abstract]
Coupon interest expense	$ 665	$ 517	$ 1,770	$ 1,557
Noncash interest expense
Amortization of debt discount	397	393	1,202	1,143
Amortization of transaction costs	68	60	197	174
Miscellaneous interest expense			3	8
Interest expense	$ 1,130	$ 970	$ 3,172	$ 2,882

Debt and Warrants - Additional

Debt and Warrants - Additional Information (Detail)	Apr. 13, 2018USD ($)	Dec. 01, 2017$ / shares	Jul. 14, 2016USD ($)Investorshares	Apr. 25, 2016USD ($)Investorshares	Apr. 21, 2016USD ($)shares	Sep. 30, 2018USD ($)$ / shares	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Shareholder$ / sharesshares	Sep. 30, 2017USD ($)
Debt Instrument [Line Items]
Number of shareholders holding major voting interest | Shareholder								2
Percentage of voting interests held by the two shareholders						75.00%		75.00%
Amortization of financing costs and discounts								$ 1,399,000	$ 1,318,000
Number of trading days for effectiveness preceding issuance of redemption notice		20 days
Redeemable portion of notes equal to percentage of principal amount of notes		100.00%
Loss on extinguishment of debt								(24,000)
Amortization of financing cost						$ 68,000	$ 60,000	197,000	$ 174,000
Financing costs, debt restructuring								(77,000)
Minimum [Member]
Debt Instrument [Line Items]
Redeemable portion of notes equal to or greater than percentage of sale price of common stock		200.00%
Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Warrants term		5 years
Warrants, exercise price | $ / shares		$ 5.21
Senior Unsecured Promissory Notes Due 2021 [Member]
Debt Instrument [Line Items]
Amortization of financing costs and discounts								$ 116,252
Unamortized debt discount remaining amortization period								2 years 7 months 2 days
Accrued interest payable						172,000		$ 172,000
Initial Closing [Member]
Debt Instrument [Line Items]
Amount funded by number of investors | Investor				2
Fair value of warrants issued				$ 11,000
Initial Closing [Member] | Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Amount funded by number of investors | Investor				1
Class of warrants or rights, issued | shares				4,319
Second and Final Closing [Member]
Debt Instrument [Line Items]
Amount funded by number of investors | Investor			2
Second and Final Closing [Member] | Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Class of warrants or rights, issued | shares			259,117
Fair value of the warrants issued			$ 662,000
Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount						50,000		$ 50,000
Unamortized debt discount remaining amortization period								2 years 7 months 2 days
Accrued interest payable						899,000		$ 899,000
Loss on extinguishment of debt								24,932
Financing cost						$ 2,400,000		2,400,000
Amortization of financing cost								1,400,000
Financing costs, debt restructuring								$ 76,612
Effective conversion rate | shares								191.9386
Debt conversion, initial conversion ratio, denominator								$ 1,000
Conversion price per share of common stock | $ / shares						$ 5.21		$ 5.21
Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Percentage of principal amount of outstanding debt held by trustee or holders, in which they may declare debt to be due and payable immediately in event of default		25.00%
Convertible Debt [Member] | Initial Closing [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Proceeds from issuance of convertible debt				$ 20,000,000
Number of common shares convertible to derivative liability due to Conversion Share Cap | shares				3,319,820
Effective interest rate on liability component								20.62%
Convertible Debt [Member] | Initial Closing [Member] | Senior Convertible Notes Due 2021 [Member] | Grifols [Member]
Debt Instrument [Line Items]
Proceeds from related party convertible debt				$ 19,900,000
Convertible Debt [Member] | Second and Final Closing [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Proceeds from issuance of convertible debt			$ 3,000,000
Effective interest rate on liability component								15.15%
Private Placement [Member] | Class of Warrant Issued April 22, 2016 [Member]
Debt Instrument [Line Items]
Number of shares into which the class of warrant may be converted | shares					263,436
Private Placement [Member] | Senior Unsecured Promissory Notes Due 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount	$ 7,000,000
Maturity date	Dec. 31, 2021
Notes bear interest rate	9.00%
Frequency of periodic payment of interest								Semiannually
Repayment terms								The Promissory Notes bear interest at a rate of 9% per annum payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2018 in the case of Promissory Notes issued on April 13, 2018 and on November 1, 2018 and in the case of Promissory Notes issued thereafter, unless earlier redeemed or cancelled in accordance with the terms of the Promissory Notes.
Redeemable portion of notes equal to percentage of principal amount of notes	100.00%
Number of shareholders holding major voting interest | Shareholder								2,000,000
Percentage of voting interests held by the two shareholders						75.00%		75.00%
Proceed from promissory notes issued	$ 2,000,000					$ 5,000,000		$ 5,000,000
Private Placement [Member] | Convertible Debt [Member] | Senior Convertible Notes Due 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount					$ 23,000,000
Maturity date					May 1, 2021
Notes bear interest rate					9.00%
Frequency of periodic payment of interest								Payable semiannually in arrears on November 1 and May 1 of each year commencing on November 1, 2016.

Revenue Recognition - Summary o

Revenue Recognition - Summary of Changes in Contract Assets and Liabilities (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Contract Assets, beginning balance	$ 67
Contract assets, additions	254
Contract assets, deductions	(196)
Contract Assets, ending balance	125
Contract liabilities: deferred revenue, beginning balance	2,173
Contract liabilities: deferred revenue, additions	202
Contract liabilities: deferred revenue, deductions	(1,718)
Contract liabilities: deferred revenue, ending balance	$ 657

Revenue Recognition - Summary_2

Revenue Recognition - Summary of Revenue Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue recognized in the period from:
Performance obligations satisfied	$ 168	$ 2,667	$ 1,663	$ 7,083
New activities in the period:
Total revenue	282	2,728	2,011	12,096
Contract Revenue [Member]
New activities in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	15	(21)	55	4,521
Performance obligations satisfied from new activities in the current period	39	69	39	441
Grant Revenue [Member]
New activities in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods	(97)		(106)
Performance obligations satisfied from new activities in the current period	$ 157	$ 13	$ 360	$ 51

Collaboration Agreement - Grifo

Collaboration Agreement - Grifols License and Collaboration Agreement - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone payments received	$ 10,000,000
Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Payments receivable upon the achievement of regulatory filing and approval milestones	$ 25,000,000
Grifols [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Minority interst percentage by other	48.00%
Unsatisfied performance obligations	$ 448,000

Stock-Based Compensation and _3

Stock-Based Compensation and Stock Options and Awards - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Costs and Expenses
Total stock-based compensation expense	$ 258	$ 736	$ 1,214	$ 1,899
Research and Development [Member]
Costs and Expenses
Total stock-based compensation expense	74	368	560	1,001
General and Administrative [Member]
Costs and Expenses
Total stock-based compensation expense	$ 184	$ 368	$ 654	$ 898

Stock-Based Compensation and _4

Stock-Based Compensation and Stock Options and Awards - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended			6 Months Ended		9 Months Ended
	Jun. 30, 2017	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized stock-based employee compensation cost		$ 0		$ 0			$ 0	$ 0
Tax benefit associated with stock-based compensation expense		0		0
Compensation expense		258,000		$ 736,000			$ 1,214,000	$ 1,899,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based stock options, granted							1,630,469
Performance-based stock options, cancelled							1,787,778
Stock options exercised during the period							3,500
Unrecognized compensation expense related to unvested stock options and stock purchases		1,377,000					$ 1,377,000
Weighted average period over which unrecognized compensation costs expected to be recognized							1 year 5 months 4 days
Unrecognized compensation expense		73,000					$ 73,000
Performance-Based Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based stock options, granted			730,000
Compensation expense							$ 215,000
Performance-based stock options, vested							290,000
Vesting period							10 years
Performance-based stock options, cancelled						0
Performance-Based Options [Member] | Officers and Vice President [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 53,000
Vesting period							10 years
Performance-based stock options, vested			20,000
Performance-based stock options, cancelled					1,500,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 0					$ 0
2005 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan expiration date							2015-03
Two Thousand And Fifteen Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increasing in shares of common stock authorized for issuance	2,500,000

Stock-Based Compensation and _5

Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Shares Available for Future Grant (Detail) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2018shares
Shares Available for Future Grant
Balance at January 1, 2018	1,645,124
Options granted	(1,630,469)
Options cancelled	1,787,778
Awards cancelled	463,500
Balance at September 30, 2018	2,265,933

Stock-Based Compensation and _6

Stock-Based Compensation and Stock Options and Awards - Schedule of Activity Under Stock Option Plan - Options Outstanding (Detail) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Number of Shares
Outstanding at January 1, 2018 | shares	3,727,581
Options granted | shares	1,630,469
Options exercised | shares	(3,500)
Options cancelled | shares	(1,787,778)
Outstanding at September 30, 2018 | shares	3,566,772
Ending exercisable | shares	2,105,323
Weighted Average Exercise Price
Outstanding at January 1, 2018 | $ / shares	$ 4.72
Options granted | $ / shares	1.25
Options exercised | $ / shares	1.06
Options cancelled | $ / shares	4.90
Outstanding at September 30, 2018 | $ / shares	3.04
Ending exercisable | $ / shares	$ 3.53
Weighted Average Remaining Contractual Term
Outstanding at September 30, 2018	8 years 3 months 10 days
Ending exercisable	7 years 7 months 6 days
Aggregate Intrinsic Value
Outstanding at September 30, 2018 | $	$ 53,360
Ending exercisable | $	$ 24,320

Stock-Based Compensation and _7

Stock-Based Compensation and Stock Options and Awards - Schedule of Unvested Restricted Stock Award Activities (Detail) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Number of Shares
Balance at January 1, 2018 | shares	613,538
Restricted shares cancelled | shares	(463,500)
Restricted share awards vested | shares	(136,613)
Balance at September 30, 2018 | shares	13,425
Weighted Average Grant Date Fair Value
Balance at January 1, 2018 | $ / shares	$ 1.95
Weighted Average Grant Date Fair Value, canceled | $ / shares	1.51
Weighted Average Grant Date Fair Value, vested | $ / shares	3.10
Balance at September 30, 2018 | $ / shares	$ 5.24

Net Loss Per Common Share - Sch

Net Loss Per Common Share - Schedule of Securities Excluded from Calculation of Diluted Net Loss per Common Share (Detail) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Common Shares Underlying Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	4,604	4,415
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	3,567	2,790
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	13	227
Unvested Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	10	10
Common Shares Underlying Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities outstanding	263	263

Going Concern - Additional Info

Going Concern - Additional Information (Detail)	Oct. 25, 2018USD ($)	Apr. 13, 2018USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)Shareholder	Dec. 31, 2017USD ($)
Going Concern [Line Items]
Accumulated deficit			$ (467,410,000)	$ (467,410,000)	$ (455,170,000)
Total shareholders' deficit			(23,462,000)	(23,462,000)	(12,531,000)
Working capital deficit			700,000	700,000
Current assets			3,476,000	3,476,000	7,684,000
Current liabilities			$ 2,821,000	2,821,000	5,466,000
Current assets are less than current liabilities				$ 700,000
Number of shareholders holding major voting interest | Shareholder				2
Percentage of voting interests held by the two shareholders			75.00%	75.00%
Cash position			$ 2,946,000	$ 2,946,000	$ 7,095,000
Private Placement [Member] | Senior Unsecured Promissory Notes Due 2021 [Member]
Going Concern [Line Items]
Number of shareholders holding major voting interest | Shareholder				2,000,000
Percentage of voting interests held by the two shareholders			75.00%	75.00%
Aggregate principal amount		$ 7,000,000
Proceed from promissory notes issued		$ 2,000,000	$ 5,000,000	$ 5,000,000
Notes receivable			$ 2,000,000	$ 2,000,000
Subsequent Event [Member]
Going Concern [Line Items]
Percentage of voting interests held by the two shareholders	48.00%
Subsequent Event [Member] | Private Placement [Member] | Senior Unsecured Promissory Notes Due 2021 [Member]
Going Concern [Line Items]
Aggregate principal amount	$ 4,000,000
Proceed from promissory notes issued	$ 2,000,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 11, 2018	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Percentage increase in annual minimum rental payments		3.50%
Deferred rent		$ 57	$ 32
Base rental expenses		$ 385
Lawsuit filing date	Jan. 11, 2018
Putative class action lawsuit	On January 11, 2018 a putative class action lawsuit, Kevin Kheder v. Aradigm Corporation, et al., No. 3:18-cv-00261, was filed in the United States District Court for the Northern District of California against the Company and two of its former officers.

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Rental Payments Required under the Operating Lease (Detail) $ in Thousands	Sep. 30, 2018USD ($)
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract]
2,019	$ 499
2,020	516
2,021	535
2,022	553
2,023	140
Total	$ 2,243

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	Oct. 25, 2018	Apr. 13, 2018	Sep. 30, 2018	Sep. 30, 2018
Subsequent Event [Line Items]
Percentage of voting interests held by the two shareholders			75.00%	75.00%
Senior Unsecured Promissory Notes Due 2021 [Member] | Private Placement [Member]
Subsequent Event [Line Items]
Percentage of voting interests held by the two shareholders			75.00%	75.00%
Aggregate principal amount		$ 7,000,000
Maturity date		Dec. 31, 2021
Proceed from promissory notes issued		$ 2,000,000	$ 5,000,000	$ 5,000,000
Notes receivable			$ 2,000,000	$ 2,000,000
Notes bear interest rate		9.00%
Redeemable portion of notes equal to percentage of principal amount of notes		100.00%
Frequency of periodic payment of interest				Semiannually
Repayment terms				The Promissory Notes bear interest at a rate of 9% per annum payable semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2018 in the case of Promissory Notes issued on April 13, 2018 and on November 1, 2018 and in the case of Promissory Notes issued thereafter, unless earlier redeemed or cancelled in accordance with the terms of the Promissory Notes.
Subsequent Event [Member]
Subsequent Event [Line Items]
Percentage of voting interests held by the two shareholders	48.00%
Subsequent Event [Member] | Senior Unsecured Promissory Notes Due 2021 [Member] | Private Placement [Member]
Subsequent Event [Line Items]
Aggregate principal amount	$ 4,000,000
Maturity date	Dec. 31, 2021
Proceed from promissory notes issued	$ 2,000,000
Notes bear interest rate	9.00%
Redeemable portion of notes equal to percentage of principal amount of notes	100.00%